Mail Tribune - Company markets prepaid phone cards to immigrants - September 16, 2006

Mail Tribune (Medford, OR — Wayback)

2006-09-16

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http://www.omniture.com --> Sections Home Page Local News AP News Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Readers Photo Gallery Sports Tempo Weather Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Readers' Choice Homelife Magazine Joy Magazine Neighborhoods Employment Guide Oregon Golf Info Oregon Wine Info Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map  --> Email Story to a Friend September 16, 2006 Maria Hernandez, the manager of Bodega Yakimex, re-stocks store shelves with long-distance phone cards in Yakima, Wash. The store stocks about 70 different types of phone cards. (Associated Press) Company markets prepaid phone cards to immigrants By MAI HOANG for The Associated Press YAKIMA, Wash. — Viscom International has targeted three areas for expansion this year: Salt Lake City, Kansas City and Yakima. That's right, Yakima. For the Atlanta-based company, the Yakima Valley is the perfect market for its sole product: a prepaid card to call Mexico. The boom for domestic prepaid phone cards — which provide allotted minutes to call long distance — has passed with the rise of cell phones with free long distance. But there's still a huge market for international calling cards. And much of that is from new immigrants who want to call relatives back home, said Fedor Smith, vice president of Atlantic ACM, a telecommunications consulting company. Advertisement Immigrants helped Viscom bring in $14 million last year. But it's still a small company in the phone card market. A competitor, IDT, reported revenues of $2.47 billion last year. The valley's large Mexican farmworker population attracted Viscom, said Christina Steiner, Viscom vice president of marketing. The company focuses on second- and third-tier cities with large Mexican populations, where advertising costs are less expensive. "As a market, it's great to have a focus," she said. "It's easier to really be able to understand the nuances of your market." Many residents find phone cards a cheaper way to keep up with friends and family. "On my cell phone it's really expensive," said Pamela Ramirez, a Yakima resident who began using cards five years ago when she moved here from Mexico. With a $5 phone card, Ramirez said she can talk for about 6 hours. It would cost her $72 to talk that long on her cell phone. The Bodega Yakimex on North First Street sells about 3,000 cards a week, said store manager Maria Hernandez. Phone cards are also popular at Fiesta Foods, a chain with a heavy focus on Mexican products. Customers at its Sunnyside and Pasco stores receive a 5 percent discount on phone cards, said owner Craig Gaylord. Gaylord uses them himself to call friends in Mexico. "The difference between (phone cards) and long distance (charges) is unbelievable," he said. There are so many competitors for the market that prices have reached rock bottom in an attempt to attract consumers. "It's very much a price-centric market," Smith, of Atlantic ACM, said. The front wall at the Bodega Yakimex's customer service counter is covered with posters for different phone cards. Some have quirky names and pictures and bold advertisements promising hundreds of minutes — one even promises a 1,000 minutes for $5. But it's questionable whether every one of the cards can keep their bold promises. Some cards don't mention that many minutes are lost paying for a variety of fees, said Joe Ridout, a spokesman for Consumer Action, a nationwide nonprofit consumer education and advocacy group. There can be fees to connect calls, for card maintenance, for taxes or for using them at a pay phone. Once those fees are tacked on, consumers may end up only getting fraction of the minutes they've been promised, Ridout said. One Spanish-speaking customer reported that he was only able to speak for 25 minutes on a card that promised 90 minutes, he said. Other cards may route calls via the Internet or second-rate phone carriers that can reduce call quality. "The quality can vary, from very clear phone calls to ones that are very poor," Ridout said. Consumers should buy one card and try it out, he said. They should also search for a customer service number. If there's one, they should call and ask for a full description of fees. "There's a lot of solid and reputable companies," he said. "You just have to go there with your eyes wide open." Since entering the Yakima market in January, Viscom has sold 25,000 of its Best Mexico cards. It's only a small part of the market. The company is focused on developing a solid reputation to lure a larger part of the market in the long run, Steiner said. The cards don't offer as many minutes as some other cards, but the company tries to keep fees to a minimum and connect the calls through well-known carriers, such as Sprint, to ensure quality. "Once the consumer uses the card and experiences that quality, then word of mouth is the best advertising tool," she said. "And in that community, word spreads quickly." Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems Online Casino Reviews Men's Clothing GMAT Prep Fundraisers UK Homeowner Loans Discount Hotel Reservations Send Flowers Casinos Canada Texas Electric Choice Compare Electric rates in Texas Windermere Van Vleet Trunks, Footlocker Online poker at AbsolutePoker.com